#JointVenture

Renault-Nissan is buying a majority stake in Russian automaker AvtoVaz. For those not in the Russian Car Appreciation Society, AvtoVaz is the maker of Lada cars.

Much to my own surprise I read in China Daily that Volkswagen only holds 40 percent in its partnership with its Chinese joint venture partner FAW. I always thought they had the usual 50:50. Well, it looks like my beliefs will become reality.

Both Toyota and the remains of its joint venture known as NUMMI have sued the remains of “Old GM” for breach of contract according to two separate reports in the Wall Street Journal [sub]. NUMMI is seeking $365m, claiming GM caused the collapse of the joint venture by unilaterally pulling out as it collapsed into bankruptcy, sticking Toyota and NUMMI with the bill.

Those decisions breached … commitments to Nummi and sounded its death knell,” said the lawsuit, filed last week. And unlike Toyota, GM’s bankruptcy estate “has refused to contribute to Nummi’s deficit during the wind down”

Toyota, meanwhile, is suing for some $73m in development costs for the Pontiac Vibe, a vehicle that GM was supposed to sell for another two years.

China’s Chery is one of the few big car companies that is not wedded to a foreigner. All the big ones are in bed with one or more Western (or Eastern) manufacturer. Finally, it looks like Chery might be losing its virginity.

Most likely filled with a certain degree of foreboding, Volkswagen signed today contracts with their joint venture partner FAW to build a new plant in the south of China, we hear from a Volkswagen press release. That VW has designs on building cars in the South of China is no news to the avid TTAC reader. But why the anxiety?

There is an interesting analysis on Chinacarforums: China-produced Western cars tend to come out bigger than their Western siblings. Especially at the higher end. A made-in-China Cadillac STS is 124mm longer than the U.S. sister model. The wheelbase grew by 100mm. A Chinese Audi A6 L has gained 97 mm in length over the Made-in-Ingolstadt relative. A BMW 5-series, made at the Chinese joint venture with Brilliance, has gained a whopping 140 mm in length and wheelbase over the Bavarian model.

SAIC halted trading of its stock today due to a “major asset reorganization.” According to Dow Jones Newswire, SAIC’s board will hold a meeting before Dec. 9 to discuss the asset reorganization plan. SAIC said its shares will resume trading on the Shanghai Stock Exchange after it announces a detailed plan on the reorganization. While SAIC is tightlipped, Chinese media is abuzz with speculations.